Capital Gain

[PRAVEEN KUMAR]

Dear Sir

Can i close my business loan taken by using capital gain (sold my residential flat given for rental)

Regards

Praveen

[ARVIND JAIN]

Query is not clear, Still, you can do that with no restriction on your usage of funds received from the sale of property unless you choose to pay tax on the capital gain amount after Indexation and all.

AI Summary

Capital gain proceeds may be used to repay business loans, with tax liability on indexed capital gain. Proceeds from the sale of a residential flat given on rent may be used to repay a business loan without restriction; tax remains payable on the capital gain as computed after applying indexation unless an alternative tax treatment is elected.